After policy rates fell close to zero in response to the global financial crisis of 2008-09, the scope for further conventional monetary policy easing was exhausted. As a result, both the Bank of England and the Federal Reserve embarked on large-scale asset purchases of government and financial securities (see Figures 1 and 2).
What are the macroeconomic effects of asset purchases?
Martin Weale, Tomasz Wieladek, 10 June 2014
ECB: An appropriate monetary policy
Mickey Levy, 16 May 2014
Europe’s modest economic recovery and uncomfortably low inflation put the ECB in a bind. Although economic conditions are improving gradually (European Commission 2014), concerns about the potentially negative impacts of deflation persist (Armstrong et al. 2014).
Considering QE, Mario? Buy US bonds, not Eurobonds
Jeffrey Frankel, 24 March 2014
The ECB should further ease monetary policy. Inflation at 0.8% across the Eurozone is below the target of ‘close to 2%’, and unemployment in most countries is still high. Under the current conditions, it is hard for the periphery countries to bring their costs the rest of the way back down to internationally competitive levels as they need to do.
Clarifying the debate about deflation concerns
Mickey Levy, 21 February 2014
A common theme among many economic policymakers, financial market participants, and the media is that rich industrialised nations face a high risk of deflation, and that deflation always harms economic performance and so must be combatted with aggressive macroeconomic stimulus. Such broad assessments are misleading, and under certain circumstances may lead to misguided policies.
Unconventional monetary policy normalisation and emerging-market capital flows
Andrew Burns, Mizuho Kida, Jamus Lim, Sanket Mohapatra, Marc Stocker, 21 January 2014
Quantitative easing (QE), which started in 2008, swelled the Federal Reserve’s balance sheet to an unprecedented $3.4 trillion. In May 2013, the Fed announced that it would evaluate the possibility of a reversal of its unconventional monetary policies – QE in particular .
Unconventional monetary policies revisited (Part II)
Biagio Bossone, 5 October 2013
Unconventional monetary policies: From quantitative easing to debt monetisation
The impact on the financial sector of long-term low nominal interest rates
Viral Acharya, Richard Portes, Richard Reid, 3 July 2013
The Centre for Economic Policy Research (CEPR) recently organised a conference at the Brewers’ Hall, London, on 10 June 2013 titled ‘A long-term environment of low nominal interest rates: what are the consequences for the financial sector’?
Exit strategies: Time to think ahead
Charles Wyplosz, 14 October 2013
Is inflation targeting dead? Central banking after the Crisis
Lucrezia Reichlin, Richard Baldwin, 14 April 2013
Before the Crisis, inflation targeting had become the de facto standard framework for monetary policy. Even non-inflation targeters like the ECB and the Federal Reserve built their monetary policy around the idea of commitment to a quantitative objective for medium-term inflation.
Stephen Grenville, 24 February 2013
In the current debate about monetary policy, two terms are bandied about to the detriment of clarity: ‘printing money’ and ‘helicopter money’ (Sinn 2011).
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- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Cadot, de Melo, 16 June 2014
Atkinson, Casarico, Voitchovsky
CEPR Business Cycle Dating Committee
CEPR Policy Research
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- What’s wrong with Europe?Baldini, Manasse
- Corporate Finance Theory Symposium19 - 20 September 2014 / Cambridge / Judge Business School, Cambridge University
- International Trade, Finance, and Macroeconomics: Research Frontiers and Challenges for Policy18 - 19 December 2014 / The Bank of England, London / The Bank of England, Centre for Macroeconomics and CEPR